StockMarketWire.com - Waste management company Biffa upgraded its annual outlook as second-half performance continued to track above expectations amid a less severe than expected impacted from the third lockdown on earnings.

Underlying earnings before interest, or EBIT, for fiscal year 2021, whilst still materially impacted by the pandemic, is now expected to be well ahead of the the company's previous expectations, in the range of £42-to-44 million.

The group would be exiting FY21 with net debt of £440-to-460 million, up from £426 million in 2020, well within its covenant headroom.

'Phase two of the Seaham rPET plant and the previously announced projects at Washington and Aldridge are progressing to plan, and the Group expects all three to come on-line in the early part of FY22,' the company said.

The company also decided to make an additional investment of £13 million at its Washington facility, increasing its HDPE milk bottle recycling capacity by a further 50% to 39,000 tonnes of input per annum and would tis polymers' business to an annual capacity of 155,000 tonnes and revenue of about £85 million.

'The investment will create a further 50 jobs and is expected to come on-line during H2 FY22,' it added.





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